India caps duty-free gold imports for jewellery exporters to curb demand

NEW DELHI: India on Thursday tightened rules for duty-free gold imports for jewellery exports by capping imports at 100 kilograms per licence, the government said in an order, as the world’s second-largest consumer of the precious metal seeks to curb imports.

The South Asian country earlier this week raised import tariffs on gold and silver to 15% from 6% as part of efforts to reduce overseas purchases of the metals and ease pressure on foreign exchange reserves from higher oil prices.

India is one of the world’s leading exporters of gold jewellery, and New Delhi allows manufacturers and jewellers to import gold without paying duty for export purposes under the advance authorisation scheme.

The government revised import rules for jewellery exporters on Thursday by capping gold imports at 100 kilograms per licence and linking future licences to fulfilment of at least 50% of earlier export obligations.

First-time applicants will also face mandatory physical inspections of manufacturing facilities by regional authorities to verify the unit’s existence, production capacity and operational status, according to the order.

Licence holders must additionally submit fortnightly reports, certified by an independent chartered accountant, detailing gold imports and exports conducted under the scheme.

“The new rules impose excessive compliance requirements. It appears the government wants to discourage gold imports, even though that could lead to lower jewellery exports,” said a Mumbai-based jewellery exporter.

India’s gold jewellery exports, including both plain and studded segments, stood at $11.36 billion in the 2025/26 fiscal year ended in March, according to data compiled by the Gem and Jewellery Export Promotion Council.

“The government seems determined to bring down gold imports. That is why it is increasing import barriers one by one,” said a Kolkata-based bullion dealer.